EU Bioeconomy Economics and Policies: Volume I Liesbeth Dries Sample
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EU Bioeconomy
Economics and
Policies: Volume I
Edited by
Liesbeth Dries
Wim Heijman
Roel Jongeneel
Kai Purnhagen
Justus Wesseler
Palgrave Advances in Bioeconomy: Economics and
                     Policies
                     Series Editor
                    Justus Wesseler
    Agricultural Economics and Rural Policy Group
                 Wageningen University
      Wageningen, Gelderland, The Netherlands
More information about this series at
http://www.palgrave.com/gp/series/16141
Liesbeth Dries • Wim Heijman
Roel Jongeneel • Kai Purnhagen
        Justus Wesseler
            Editors
EU Bioeconomy
 Economics and
Policies: Volume I
Editors
Liesbeth Dries                                   Wim Heijman
Agricultural Economics and Rural                 Agricultural Economics and Rural
Policy Group                                     Policy Group
Wageningen University                            Wageningen University
Wageningen, Gelderland                           Wageningen, Gelderland
The Netherlands                                  The Netherlands
Justus Wesseler
Agricultural Economics and Rural
Policy Group
Wageningen University
Wageningen, Gelderland
The Netherlands
© The Editor(s) (if applicable) and the Author(s), under exclusive licence to Springer
Nature Switzerland AG 2019
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights of
translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on
microfilms or in any other physical way, and transmission or information storage and retrieval,
electronic adaptation, computer software, or by similar or dissimilar methodology now
known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a specific statement, that such names are
exempt from the relevant protective laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information
in this book are believed to be true and accurate at the date of publication. Neither the pub-
lisher nor the authors or the editors give a warranty, express or implied, with respect to the
material contained herein or for any errors or omissions that may have been made. The
publisher remains neutral with regard to jurisdictional claims in published maps and institu-
tional affiliations.
This Palgrave Macmillan imprint is published by the registered company Springer Nature
Switzerland AG.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
                     Contents
Part I Introduction 1
1	Introduction  3
   Justus Wesseler, Liesbeth Dries, Wim Heijman, Roel
   Jongeneel, and Kai Purnhagen
                                                       v
vi   CONTENTS
Part III Agriculture 97
Index229
                       Contributors
                                                                   ix
x   CONTRIBUTORS
                                                                                xi
xii   List of Figures
Fig. 10.4 Direct payments and their share in farm income (€/agricultural
          work unit) by farm size (area-based). (Source: European
          Commission 2018)                                                145
Fig. 11.1 Steps in a CE analysis. (Source: Adapted from Martins and
          Rushton 2014)                                                   167
Fig. 13.1 Provision of environmental benefits versus avoiding harmful
          effects. (Source: Authors)                                      192
Fig. 14.1 The nine CAP-specific objectives proposed for the new CAP.
          (Source: European Commission 2018a, b)                          212
                           List of Tables
                                                                           xiii
   PART I
Introduction
                                  CHAPTER 1
Introduction
Over the past two decades, the European Union (EU) internal market
policies in general, and the ones related to agriculture and the common
agricultural policies in particular, have observed substantial changes. These
include a move from direct production-related payments towards pay-
ments linked with environmental performance and rural development.
The EU Common Agricultural Policy (CAP) is organized under two pil-
lars, including cross-cutting issues. The first pillar includes the direct pay-
ments and market measures, and the second pillar includes the rural
development policy. Rural development policy has become evermore
important.
   The increase in horizontal and vertical integration in the agriculture
and food sector, the increase in intra-industry trade and the globalisation
of trade but also in norms and values have linked the agricultural sector
more strongly with the food sector. Further, technical change has increased
the portfolio for processing biomass not only into food and feed but also
into a number of alternative bio-based products including bioenergy, bio-
polymers and more (European Commission 2012). The development of
bio-based industries provides new opportunities for agriculture and rural
communities (Wesseler and von Braun 2017). Environmental concerns
and climate change in particular have increased the demand for sustainable
development-related policies as indicated in the circular economy
(European Commission 2015) and bioeconomy strategy (European
Commission 2018) documents.
    As a result of these developments, assessing the agricultural sector and
related policies in isolation may result in substantial biases from a technical
change, a regional (Heijman et al. 2017), an organisational (Pascucci et al.
2015) as well as a legal perspective (Purnhagen 2013). One of the most
striking examples is perhaps the debate about new developments in plant
breeding. It has often been argued that the stringent regulatory policies on
the approval of genetically modified organisms (GMOs) can be justified by
concerns of EU consumers towards the technology, but that this will not
have further implications for other sectors such as medicine. This argument
falls short of the insight that such kind of policy is very likely to spill over to
other sectors of the economy as well. Take patent applications for the gene-
editing technology CRISPR-Cas that can be applied across several sectors as
an example: The EU has only a share of about 7% of all patents, while the
USA and China have a share of more than 40% according to a recent study
(Martin-Laffon et al. 2019).1 The shares for the medical sector are even
lower, only about 3.5%, while for the agricultural sector they are about 8%.
The results suggest that EU policies on GMOs can have substantial, in this
case negative, spill-over effects on other sectors. The example further illus-
trates the complexity of EU bioeconomy policies.
    Within the two volumes, we attempt to make a contribution to better
understanding the complexity of EU bioeconomy policies. As mentioned
above agricultural policies in the EU should not be assessed in isolation.
We have given the book the name EU Bioeconomy Economics and Policies
to explicitly stipulate the importance of the interconnectedness of the agri-
cultural sector and related policies with up- and downstream sectors.
   1
     Gene editing is considered to be the leading technology in biology for developing new
solutions for a number of problems in agricultural production and human medicine as well
as new products for the bio-based industry. CRISPR (clustered regularly interspaced short
palindromic repeats) in combination with Cas proteins is a widely used technology for gene
editing. (Doudna and Sternberg 2017).
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